One of the game tips presented on the loading screen reads “Physical skill increases your health”.
Thorough testing disproves this - the player does not get extra health. Physical skill level 0 leaves the player with 700 health, at physical skill level 7 the player remains at the same 700 health.
Resistance to damage was brought up - it got tested with a few hostile creatures (giant crab, night snake), it does not seem to provide any resistance.
The only differences higher physical levels provide (that I am aware of) are increased sprinting stamina and breath-holding times.
False game tips within the game cause misinformation to circle around in the community, would be awesome if this was fixed.